Bima Sugam allows agent-assisted insurance purchases, while new IRDAI rules will make it easier for buyers to identify who sold them a policy.
Insurance agents and intermediaries can sell and service policies through Bima Sugam under the platform’s assisted-sales model. The latest insurance distribution rules now add another layer of accountability by requiring clearer identification of the salesperson behind a policy.
Agents are not a new addition to Bima Sugam. In 2024, the Finance Ministry told Parliament that the platform would follow an agent-and-intermediary-led assisted-sales model. Agents can onboard customers and help them buy and service policies through the marketplace.
The Bima Sugam regulatory framework also defines insurance stakeholders to include consumers, insurers, intermediaries and insurance agents.
What changes when an agent sells you a policy?
The main change for buyers is stronger traceability. From January 1, 2027, new intermediary rules require proposal forms, policies and certificates of insurance to identify the authorised salesperson involved in a sale. The documents must record the seller’s name and functional identity, along with relevant branch or office contact details.
This gives buyers a clearer record of who handled the transaction. It can also help insurers and regulators trace responsibility when a customer reports mis-selling or incorrect information.
Will you know how much commission the agent earns?
Do not assume every policy will display the exact commission paid to the seller. However, IRDAI’s code of conduct for insurance agents requires an agent to disclose the scale of commission for the insurance product if you ask. The agent must also identify themselves, state which insurer they represent and show their licence on request.
Before buying, ask whether the recommended policy carries commission. You should still compare the premium, coverage, exclusions, waiting periods and other terms before deciding.
How can you verify your agent before paying?
IRDAI advises buyers to check an agent’s credentials before making any payment. Follow these steps:
- Ask for the agent’s licence and identity card. Check the seller’s full name and affiliation with the insurer or intermediary.
- Verify the agent’s details. IRDAI says PAN serves as the primary identifier for retrieving an agent’s information from its database.
- Confirm the policy directly with the insurer. Check the product, premium and seller details through the insurer’s official website, app or customer-care channel.
- Pay only through an authorised channel. Use the insurer’s payment system or an authorised platform. Do not transfer the premium to a salesperson’s personal bank account or UPI ID.
- Stop if you see red flags. Do not proceed if the seller refuses to show credentials, asks you to leave proposal fields blank or pressures you to pay immediately. Verify the offer directly with the insurer before taking any further action.
Need a second opinion before choosing a policy or accepting an agent’s recommendation? Connect with MyRupia for independent guidance on your insurance options. MyRupia does not sell insurance or earn commissions from insurers, so its experts can help you assess policies without a sales incentive.
Disclaimer: This MyRupia article is for informational purposes only and is based on publicly available government, regulatory and industry sources. It should not be treated as investment, financial, tax, insurance, or legal advice. Information, examples, market data, and expert views mentioned in the article may change over time and should not be considered a recommendation to buy, sell, invest in, or surrender any financial product. Readers should evaluate their individual circumstances and consult a qualified financial professional before making decisions.